Report: DOJ antitrust staff will recommend blocking T-Mobile-Sprint merger

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According to anonymous sources speaking with CNBC, the proposed T-Mobile-Sprint merger could be in serious jeopardy. The sources allege that the antitrust staff at the U.S. Justice Department will eventually advise blocking the merger.

A final decision on the matter isn't expected for a month, but this news — if true — doesn't bode well for the $26 billion sale.

The final decision on the matter as far as the Justice Department is concerned now lies with political appointees, led by antitrust division chief Makan Delrahim. These high-ranking members will take this alleged recommendation of the antitrust staff into consideration when they make their final decision.

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T-Mobile pledges to sell Boost Mobile after Sprint merger (Update: DOJ still may not approve)

Update:

May 20, 2019 at 2:42 p.m. ET: It looks like T-Mobile's revised plan to merge with Sprint may not be enough. A new report from Bloomberg claims the U.S. Justice Department may still not …

The antitrust staff fears that New T-Mobile — the potential company formed by combining T-Mobile and Sprint — will not work as hard to steal customers from primary rivals Verizon and AT&T. This could make the wireless industry less competitive overall and result in higher costs for consumers.

To its credit, T-Mobile has made various commitments and promises that these fears would not come to pass.

This news is in stark contrast to recent revelations that the Federal Communications Commission — headed by Ajit Pai — will support the merger. The FCC agreed to back the merger when T-Mobile agreed to sell off the Sprint company Boost Mobile after the merger is complete.

You can read more about the history of the T-Mobile-Sprint merger in our roundup below.

NEXT: T-Mobile Sprint Merger: Everything you need to know

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